How you handle your bank accounts can cause divorce issues

Once you’ve made up your mind to file for divorce, your biggest concerns will likely be reducing the negative consequences of your decision. Preventing your ex from taking retaliatory financial steps may seem like a good decision, but how you do so could potentially impact the outcome of your divorce.

Until the day that you file for divorce or become officially separated, you and your spouse share your marital assets and debts. Once you file, the courts will typically limit your ability to withdraw assets. That means that timing will make a big difference about whether a withdrawal has legal consequences.

Big withdrawals and major spending could lead to claims of dissipation

In most cases, when the Texas family courts review your circumstances and decide how to split up your assets, they want to produce an outcome that is fair and reasonable based on your family circumstances. If your ex can show the courts that you have intentionally diminished the marital estate by pulling money out of your shared bank or racking up substantial debt before you initiate divorce proceedings, that could influence the way the courts divide your assets.

Although it is natural and normal to want to protect yourself and your financial stability, it is almost always in your best interest to speak with an attorney before you make any major financial decisions or announce your intention to file for divorce.

Our blog and website have content that you may want to explore to better educate yourself about financial concerns in high-asset Texas divorces, such as how the courts divide your assets, for your own peace of mind and financial safety.